Consultation on Asia Funds Passport to begin

funds management

22 December 2017
| By Oksana Patron |
image
image
expand image

The Turnbull Government is seeking public comment on draft legislation for the Asia Region Funds Passport and on the tax treatment of Corporate Collective Investment Vehicle (CCIVs).

The Minister for Revenue and Financial Services, Kelly O’Dwyer, said that the passport would enable Australian funds manager to offer their products into Asia without having to go through duplicative approval processes in each economy.

The second round of consultation would help put the legislation in place in the first half of 2018 and would mean that Japan, Korea, New Zealand and Thailand would be also implementing the passport.

“It will also mean that investors will be able to access many more investment opportunities in our region through funds that are offered in Australia,” O’Dwyer said.

“CCIVs will increase the competitiveness of Australia’s managed funds industry by aligning Australia’s legal funds structures with those found in the rest of the world.”

The minister also stressed that the Australian funds market currently used unit trusts whereas the rest of the world tended to use corporate and limited partnership investment vehicles.

The proposed tax framework for the new CCIV had been designed to align with the attribution tax regime for managed investment trusts (MITs), with one of the key features of the CCIV tax regime being capital gains tax relief for attribution MITs that converted into CCIVs and met the eligibility requirements for attribution tax.

The further consultations on the regulatory aspects of the CCIV framework would be expected to take place in the first half of 2018.

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

Completely agree Peter. The definition of 'significant change is circumstances relevant to the scope of the advice' is s...

3 weeks 5 days ago

This verdict highlights something deeply wrong and rotten at the heart of the FSCP. We are witnessing a heavy-handed, op...

1 month ago

Interesting. Would be good to know the details of the StrategyOne deal....

1 month ago

Insignia Financial has confirmed it is considering a preliminary non-binding proposal received from a US private equity giant to acquire the firm. ...

1 week 3 days ago

Six of the seven listed financial advice licensees have reported positive share price growth in 2024, with AMP and Insignia successfully reversing earlier losses. ...

6 days 3 hours ago

Specialist wealth platform provider Mason Stevens has become the latest target of an acquisition as it enters a binding agreement with a leading Sydney-based private equi...

5 days 7 hours ago